Uber has struck a deal to purchase an additional 4.5% stake in Delivery Hero for €270 million, buying shares at €20 each from the company's largest shareholder, Prosus. This transaction, reported by the Financial Times, elevates Uber's ownership to about 7% and signals aggressive expansion by U.S. delivery giants into Europe's competitive food delivery market. The move arrives amid Prosus's efforts to reduce its holdings to meet EU competition rules linked to its €4.1 billion acquisition of Just Eat Takeaway.
Strategic Investment Amid Market Pressures
San Francisco-based Uber describes the purchase as an opportunistic step, following its $300 million investment in Delivery Hero earlier in May 2024. The agreed price sits just below Delivery Hero's Thursday close of €20.14, yet commands a 22% premium over the stock's one-month average after a 7% daily gain. Delivery Hero operates in roughly 70 countries through brands like Talabat, Glovo, and Foodpanda, but faces shareholder demands to improve performance and offload weak assets.
Prosus Trims Stake Under Regulatory Scrutiny
Prosus, which holds about 27% of Delivery Hero, sells the stake to comply with EU requirements for its Just Eat Takeaway takeover. The Dutch group plans to shrink its position to single digits by August 2026, considering options like block sales or gradual sell-offs. Activist investor Aspex Management, owning 9%, has shown interest in buying part of Prosus's shares, though talks remain unresolved; it also pressures chief executive Niklas Östberg to streamline operations or face removal.
Broader U.S. Push into European Delivery
Uber's investment aligns with its recent entry into food delivery across seven new countries, building on patterns set by DoorDash's £2.9 billion purchase of Deliveroo last year. North American firms target Europe's fragmented sector, where local players struggle against rising costs and competition. This consolidation could reshape market dynamics, offering Uber deeper footholds while intensifying scrutiny on Delivery Hero's path to profitability.
